By Muskan Arora
The growth
of AI and technology has got the $6bn Kern County Employees’ Retirement
Association, California excited to add a dedicated sleeve to infrastructure this year.
Within the
real assets sleeve, the system has initiated adding energy exposure alongside
cold storage real estate exposure, as a part of its 2024 initiatives.
The system hiked
its cold storage real estate allocation through co-investments.
With almost
an equal allocation to opportunistic real estate, value-added and opportunistic
real assets, the system aims to focus on defensive property types.
Most
recently, the system has committed $30m to Singerman Real Estate
Opportunity Fund V, which focuses on life sciences, senior housing, RV parks,
and marinas.
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For its private markets’ allocation, KCERA has a long-term target
allocation of 18%, with the most exposure to private credit at 8% target,
followed by 5% for both private equity and real estate.
The plan aims to reach its target allocation around 2026.
The system allocates 3.3% to its real assets sleeve, against
a target of 5%, as of January 1.
As a part of its private markets plans for this year, the
system will focus on international buyout and growth exposure within its
private equity sleeve.
“Developed Europe PE is interesting,” as stated in the latest
meeting materials.
Within PE, the system will continue to opportunistically add
venture capital strategies.
The system leans more towards buyouts with each commitment
size ranging from $30m to $50m.
Buy and build, operational value-add, sector specialists and
small/mid-cap bias are a few areas of interest for KCERA.
Additionally, within growth of venture, which holds a
smaller pocket within PE sleeve, is focused on early stage and/or sector
specialist venture capital investments.
The system allocates 4.6% to its private equity sleeve,
against a target of 5%, as of January 1.
